2024 (11) TMI 539 - HC - Indian Laws

Exemption Scheme (Policy) to be applied with retrospective or prospective effect - Seeking direction to the respondents to refund the amount to the petitioner realized under the head of 'Tax' in respect of his Hybrid Vehicle - HELD THAT - Admittedly, the vehicle in question has been purchased by the petitioner prior to the date of Policy, 2022, i.e. 13.10.2022 and tax itself has been paid as applicable on the said date and, therefore, it cannot be said that under the said Policy/Notification, the petitioner was entitled to the exemption as provided. Only on account of the fact that the vehicle was registered on 18.10.2022, i.e. after the date as indicated in the amendment, i.e. 14.10.2022, the petitioner cannot seek the refund from the respondents as the tax was paid prior to the date of the said Policy. It has been laid down by Hon ble Supreme Court in M/S. STAR INDUSTRIES VERSUS COMMISSIONER OF CUSTOMS (IMPORTS) , RAIGAD 2015 (10) TMI 1288 - SUPREME COURT that the eligibility criteria laid down for exemption notification is required to be construed strictly. In that view of the matter, no case for issuing direction for refund, as prayed for, is made out - Petition dismissed.

Summary

Issues:
Petitioner seeks refund of tax paid for a hybrid vehicle under an exemption notification for electric vehicles.

Analysis:
The petitioner filed a writ petition seeking a refund of Rs. 1,74,900/- paid as One Time Tax (OTT) for a hybrid vehicle purchased and registered in Uttar Pradesh. The petitioner argued that a notification exempting tax on electric vehicles purchased and registered in U.P. from the date of the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022 should also apply to hybrid vehicles. The State contended that the exemption notification specifically required the vehicle to be purchased and registered after the date of the policy, which was 14.10.2022, while the petitioner bought the vehicle on 13.10.2022. The petitioner argued that since the vehicle was registered on 18.10.2022, after the policy date, the refund should be granted.

The High Court examined the exemption notification which provided a tax exemption for electric vehicles purchased and registered in U.P. from the date of the policy. The Court noted that the petitioner purchased the vehicle before the policy date and paid the tax applicable on that date. Therefore, the Court held that the petitioner was not entitled to the exemption as per the notification. The Court emphasized the strict interpretation of eligibility criteria for exemption notifications, citing the Supreme Court's decision in Star Industries v. Commissioner of Customs (Imports), Raigad (2016) 2 SCC 362. Consequently, the Court dismissed the petition, stating that no grounds existed for granting the refund as requested by the petitioner.